Question: There are three candidate cities for a new facility to be opened.Fixed Costs and variable costs are seen in TABLE-1 for each candidate city. TABLE-1

There are three candidate cities for a new facility to be opened.Fixed Costs and variable costs are seen in TABLE-1 for each candidate city.

TABLE-1 Candidate Fixed Cities / Fixed Costs($) / Variable Costs ($/ton) zmir /50.000 /80 Bursa /150.000 /30 Eskiehir /200.000 /10

TABLE-2

Candidate Cities / Man Power(%40) / Energy(%25) / Transport(%20) / Raw Meterial(%15) zmir /75 /80 /90 /70 Bursa /80 /70 /60 /80 Eskiehir /90 /70 /80 /85

a.Show the cost lines drawing the break-even graphic and determine the intervals which one is better for each alternavite city. b. Which city should be seleceted for 4285 ton production c.Which alternavite should be selected according to Factor Rating Method using TABLE-2(Neglect the costs)

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